Indian export success for NZ construction firm

1 July 2005 – Rotorua based Hayes International has just
secured a US$6million export contract in India.

Over
a year in the making, it is expected to be the first of
several projects for Hayes International in what has now
become the 65th country they do business in.

The
contract is for roll forming machinery which will go into
three new, state-of-the-art production facilities. The
company manufactures roll forming machinery whereby steel is
rolled into metal building components.

New Zealand
Trade and Enterprise Client Manager Warwick Downing, says
the Indian market offers a lot of potential for specialist
firms such as Hayes.

“It’s an increasingly important
market for New Zealand firms and has its own complexities
and challenges. Businesses who plan well and target
high-growth opportunities have a positive future in the
market and we have seen New Zealand exports growing from
$157million (Dec 2003) to $196 million (Dec 2004),” says Mr
Downing.

Hayes International General Manager Michael
Lowe says, by mid-2003 the company had a “gut feel” the
market in India could have huge potential.

“Hayes has
been in this industry for more than 40 years and our steel
industry sources indicated investment was being channelled
into the industry in both galvanized and paint coating
lines,” says Mr Lowe.

These are the products which end
up going on buildings, says Mr. Lowe. This signalled to
Hayes that India was poised to become the next big thing in
the metal building industry. Mr Lowe refers to China in the
mid-80’s, when building was predominately made from masonry.
Fast forward to today, says Mr. Lowe and Hayes not only has
a factory in China but behind Australia, it is their second
largest market.

Mr. Lowe says the use of steel in
construction, as opposed to the traditional bricks or
concrete, provides a means of housing people quicker.

“The implications of this will mean a step-change for not
only the Indian steel industry, but also for the Indian
economy,” says Mr Lowe.

He says they acknowledge and
congratulate the customer who is making the bold investment
in the metal building industry. “Steel construction isn’t
even taught in university yet so there is recognition that
education processes need to be improved.”

Mr. Lowe
applauds the preliminary work done by NZTE and their network
of specialist staff in India. If they had gone in blindly,
with no help from NZTE, success wouldn’t have come as
quickly.

For Hayes, the follow-on effect of this first
contract will be more valuable in an ongoing way.

Mr.
Lowe says the first wave is the one big order from the first
big customer. This in turn creates a ‘wonderful
opportunity’ for them to continue to grow their business as
middle size businesses will then want machinery in order to
remain competitive.

They plan to maximise these
opportunities by returning to India twice this year.

“India as a
market has huge potential, not only for us, but for New
Zealand exporters in general. If you’re lucky, you have one
appointment a day and unless there is someone on the ground
to assist, you end up spinning your wheels.”

NZTE’s
Warwick Downing says it’s been very rewarding for NZTE to
have been involved as a catalyst for growth over the past
two years, and to witness the progression and opening of an
exciting new market for Hayes International.

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